5-MILLIONNIGHTS BOOKED EACH YEAR

Travelers booking into hostels becoming more 'discerning'

Holidaymakers are becoming more discerning when it comes to spending money abroad, which could lead to an increase in the number of people booking hostels and budget hotels.

According to the Chartered Institute of Marketing (CIM), travelers have become much more prudent with their cash since the start of the economic crisis and no longer believe what they read in brochures.

Ray Jones, Head of Communications at the firm, explained: "They are looking for real value for money and the marketers need to be aware of that.

"They need to brush up on the basics of customer service because that is a differentiator in these tight times."

His comments came after research published by Arena BLM indicated that 33 percent of people have cut their holiday spending budget in the last three months.

Even though the purse strings are being tightened, travelers still yearn to explore foreign seas this year, the study also revealed.

In fact, separate research from BLM Horizon, a division of Arena, reported recently that 70 percent of holidaymakers in Britain intend to take at least as many breaks this year as last.